Is The Cybersecurity Market Facing A Downturn?

Uploaded on 2016-03-16 in NEWS-Cybersecurity News, FREE TO VIEW, BUSINESS-Services-IT & Telecoms, BUSINESS-Services-Financial

For the last couple of years, cybersecurity has stood out as one of the strongest segments of the tech sector, but some new reports show the market may be cooling down in 2016.

Last year in particular was huge for cybersecurity; in December a forecast from Gartner said worldwide spending on cybersecurity in 2015 was expected to reach $75.4 billion, representing a 4.7 percent spike in growth compared to 2014. Many factors were reportedly driving this significant growth, including government and law enforcement initiatives, high-profile data breaches and increased legislation.

However, The Wall Street Journal reported March 1 that some changes may be in store for the cybersecurity landscape in the year ahead.

Private cybersecurity companies are putting plans to go public on hold as some cybersecurity stocks are being hit hard in the market. One exchange traded fund called HACK that trades like a stock was reportedly down more than 30 percent since June 2015.

“Two months ago, I would have said we were 18 months away from going public but now, with the market the way it is, it’s more like 36 months,” Matthew Prince, CEO of CloudFlare, told WSJ. The firm raised $110 million in 2014, 80 percent of which is still in the bank, and Prince said the company remains profitable.

Rather than seeing private companies prepare for IPOs, venture capitalists and investment bankers expect 2016 to be a year of mergers and acquisitions throughout the cybersecurity market, WSJ reported.

In 2015, there were 133 security M&A deals, an increase of 105 deals compared to 2014, but according to 451 Research’s tech outlook for 2016, security is expected to have the most M&A activity in 2016, exceeding mobile technology for the first time in six years.

“We’re confident that we’ll have options in respect to the future of the company – whether it be a possible IPO or being acquired by a strategic company,” Centrify CEO Tom Kemp told WSJ in an email.

Cybersecurity startups are also facing more challenges when it comes to fundraising in the current market, with VCs today becoming more discerning about where they choose to invest.

“What was once a top-line-growth-at-any-cost mentality has shifted to put a focus based on balancing of top line growth and ensuring a path to sustainable profitability,” said ForeScout CEO Mike DeCesare in an email to WSJ. “This is based on investors having made bets on companies at very high valuations that are now coming in with earnings below expectations,” he added.

Pymnts: http://bit.ly/1QtLRGB

« Why Do We Fall For Online Scams?
China’s Quantum Satellite Changes Cryptography »

CyberSecurity Jobsite
Perimeter 81
Cyrin

Real Attacks. Real Tools. Real Scenarios.
Schedule a demo

Go Cyber

Training that transforms behaviours

Sign Up: Cyber Security Intelligence Newsletter

Directory of Suppliers

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

ManageEngine

ManageEngine

As the IT management division of Zoho Corporation, ManageEngine prioritizes flexible solutions that work for all businesses, regardless of size or budget.

Resecurity, Inc.

Resecurity, Inc.

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Aqua Security Software

Aqua Security Software

Aqua Security helps enterprises secure their cloud native applications from development to production, whether they run using containers, serverless, or virtual machines.

Resource Centre for Cyber Forensics (RCCF)

Resource Centre for Cyber Forensics (RCCF)

RCCF is a pioneering institute, pursuing research activities in the area of Cyber Forensics.

SKOUT Secure Intelligence

SKOUT Secure Intelligence

SkOUT Secure Intelligence (formerly Oxford Solutions) provides cyber security monitoring services to organizations around the globe.

Ubiq Security

Ubiq Security

Ubiq has developed a software solution that secures any type of data, on any device, anywhere, with nearly no impact to system performance or user experience.

NITA Uganda (NITA-U)

NITA Uganda (NITA-U)

NITA-U has put in place the Information security framework to provide Uganda with the necessary process, policies, standards and guideline to help in Information Assurance.

Cybercrime Support Network (CSN)

Cybercrime Support Network (CSN)

CSN is a public-private, nonprofit collaboration created to meet the challenges facing millions of individuals and businesses affected each and every day by cybercrime.

The Cyber AB

The Cyber AB

The Cyber AB is the official accreditation body of the Cybersecurity Maturity Model Certification (CMMC) Ecosystem.

Visible Statement

Visible Statement

Visible Statement is a computer-based delivery system designed to insure the retention and recall of your most important security training messages.

Cyber Intelligence House (CIH)

Cyber Intelligence House (CIH)

Cyber Intelligence House provides risk exposure solutions for a wide range of audiences including companies, government agencies, regulators, investors, law enforcement and consumers.

BT Security

BT Security

BT provides telecommunications and network infrastructure services to keep businesses around the world connected and secure.

IPKeys Technologies

IPKeys Technologies

IPKeys delivers innovative cybersecurity and technology solutions focused on helping the federal government reduce risk and protect the US from cyberattacks.

International Cyber Threat Task Force (ICTTF)

International Cyber Threat Task Force (ICTTF)

The International Cyber Threat Task Force is a not-for-profit initiative promoting the ecosystem of an International independent non-partisan cyber security community.

Open Source Security Foundation (OpenSSF)

Open Source Security Foundation (OpenSSF)

OpenSSF is committed to collaboration and working both upstream and with existing communities to advance open source security for all.

Alethea

Alethea

Alethea is a technology company helping companies, nonprofits, and democracies protect themselves from harms stemming from disinformation and social media manipulation.

Coffee Cup Solutions

Coffee Cup Solutions

We offer a full spectrum of IT Services, from our UK based Helpdesk to IT Consultancy and Cyber Security. Our team has the skills and experience to develop, deliver and manage IT for your business.

Longbow Security

Longbow Security

Longbow automates root cause for your application and cloud risks, enabling teams with intelligent remediation actions that reduce the most risk with the least effort.